Our complaint alleged that taxpayer financing of these activities violates the Establishment Clause and that the organization's anti-gay employment policy violated federal and state employment laws. In July 2001, the trial court dismissed the employment claims and the portion of our Establishment Clause claim that relied on Sunrise's employment policies. The trial court later dismissed our remaining claims on the ground that our clients lacked standing as taxpayers to challenge the government's funding of Sunrise. We appealed this ruling. (Read our Opening Brief and Reply Brief to the U.S. Court of Appeals for the Sixth Circuit.)

The case then returned to the trial court. In March 2013, we reached a settlement agreement in principle with the State, with the following terms:

Child-care agencies that contract with the State would be forbidden from proselytizing children, pressuring children to take part in religious activities, and discriminating against children on the basis of their religious beliefs.

Child-care agencies would be prohibited from placing religious items in children’s rooms without their consent.

The state would be barred from placing children in a religiously affiliated facility over a child’s or parent’s objection, unless no alternative facility that can address the child’s needs is available.

The state would be required to closely monitor state-funded child-care agencies to ensure that they are complying with the terms of the settlement, and to provide us with detailed records that would enable us to confirm compliance.